5. __________________refers to the benefits of holding some inventory rather than completely depending on the futures market for supply a. Contract yield b. Convenience yield c. Storage benefit d. Holding benefit
5. __________________refers to the benefits of holding some inventory rather than completely depending on the futures market for supply
a. Contract yield
b. Convenience yield
c. Storage benefit
d. Holding benefit
A convenience yield is a benefit or premium related with holding a basic item or actual great, instead of the related subordinate security or contract. Now and again, as the aftereffect of unpredictable market developments like an altered market, the holding of a fundamental decent or security might turn out to be more beneficial than possessing the contract or subsidiary instrument because of its relative shortage versus popularity. Consider buying actual bundles of wheat instead of wheat future contracts. In case there's an abrupt dry spell, and the requirement for wheat expands, the contrast between the primary price tag of the wheat versus the cost after the shock would be the convenience yield.
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